Glossary

Patent licensing

Patent licensing is a legal agreement in which a patent owner grants another party the right to use, manufacture, sell or distribute an invention protected by the patent. In return, the licensee typically pays royalties, fees or other compensation to the patent holder.

Description

Patents are valuable business assets, but maintaining, defending and monetizing them can be complex. Patent licensing provides a structured way to extract value from patented technology by sharing controlled usage rights.

Licensing agreements vary in scope and exclusivity. Exclusive licenses grant rights to a single licensee, preventing even the patent owner from using the invention. Non-exclusive licenses allow multiple parties to use the same patent simultaneously. Cross-licensing enables two or more patent holders to exchange rights, often to settle disputes or foster collaboration. A well-structured licensing strategy balances financial return, risk management and compliance with competition laws. It can support R&D partnerships, accelerate market entry and turn dormant IP assets into revenue-generating opportunities.

Example use cases

  • Revenue: Generate revenue from underutilized or non-core patents.
  • Entry: License technology to partners in new regions to expand product reach.
  • Collaboration: Facilitate joint ventures or R&D partnerships through shared IP.
  • Mitigation: Settle infringement disputes through licensing or cross-licensing agreements.
  • Optimization: Evaluate which patents to maintain, license or divest for maximum ROI.

Key benefits

Revenue
Turn innovation into ongoing financial value.
Flexibility
Retain ownership while enabling wider commercialization.
Expansion
Partner with local entities for global scalability.
Innovation
Encourage collaboration and new product development.
Innovation
Protect all parties through legally robust, transparent agreements.

RWS perspective

At RWS, we support every stage of the IP lifecycle – from patent drafting and filing to portfolio management and monetization. Our IP Research and Analytics services help clients identify licensing opportunities, assess patent value and conduct due diligence before negotiating agreements.

By combining human expertise in patent law and linguistics with intelligent data analysis, we help organizations make informed licensing decisions that align with business strategy and regulatory requirements. Our Human + Technology approach ensures every licensing opportunity is backed by comprehensive evidence and global IP intelligence – enabling clients to maximize the commercial impact of their innovations.